Five Fearless Predictions
For 2009:

1) Indianapolis and a number of markets will see no significant reduction in home inventory.
Thousands of homeowners are awaiting the first good sign of real estate tidings. When they see it, the market will get flooded over and over with waves of new listings from years of pent up selling interest. Make no mistake....inventory is the single biggest factor in value growth above ALL others.

2) Many Real Estate Companies and Realtors will continue to 'spin' the market positive.
As consumers you must understand some Brokerages and individuals simply cannot help themselves. They cannot find it in themselves to say 'it's a great buyer's market but a challenging seller's market.' They actually still think that you won't find out if the market is in the crapper. In a web 2.0 world, transparency is the key to credibility. Those that have it will survive. Those that don't have no chance. Proprietary information is dead. It's what we will do with it as real estate professionals that will make us shine.

3) Interest Rates Will Continue to Go Down.
We may see rates flirt with 4.0% before we're done. 4.0%! While that would be an amazing rate, is still will NOT trump fear consumes are feeling. If you offer a prospective buyer a 0% interest rate but he's afraid of losing his job, it still doesn't matter. Things will get better when consumers get a bit less cynical.

4) Those who sell and or buy in 2009 will look back and be very grateful.
While we may see some improvement in late 2009, real estate selling, will not be the same for a long LONG time. If you sell a property now, you may not be leaving money on the table as you think. If you buy, you will most certainly look back in five years and know it was one of the best investments of your life. Not in two years, but five.

5) Lawrence Yun, the chief economist of the National Association of Realtors will continue to say idiotic things about the real estate market.
Pick a month any month, add Lawrence Yun and that month on Google and watch the fun roll in. I would swear this guy takes a great big Bob Marley hit off his favorite plant before he speaks because his views always bring on a clueless grin and a severe case of the munchies. Nice job propping up our cred there, Larry.

Finally, here's a great piece from Lani Rosales of Agent Genius on selling your home. Seem obvious? For many, not so much. Happy New Year everyone. Good riddance 2008.



Questions? Comments? Donations? Greg@GregCooper.com or 317.848.GREG (4734)

Fannie, Freddie, Whatever it takes.

So Warren Buffet thinks it's a great idea. Frankly that's about good enough for me. So does the Dick Vitale of money, Jim Cramer at CNBC. In fact just about anyone you ask today is in favor of the government take over at the two lending giants Fannie May and Freddie Mac. While it would have been best that they not have to be dealt with in this way, the take over saves millions from foreclosure, nudges the real estate market forward and probably saves a run on one or several other lending insitutions.

For those of you who have their fannies and freddies confused, here's the simple version of who they are and why they matter.
Fanniemae and Freddie Mac, are the largest loan guarantors in the country. They are responsible, essentially, for the health of the loan mortgage market in the United States. They have nothing to do with a semi sweet box of chocolate or a deceased rock star.


They do have a significant impact on the health of the U.S. housing market and subsequently the American public as a whole. Mark Zandi, chief economist at Moody's Economy.com predicted that 30-year mortgage rates, currently averaging 6.35 percent nationwide, could dip to close to 5.5 percent. That's because investors will be more willing to buy the debt issued by Fannie and Freddie -- and at lower rates -- since the federal government is now explicitly standing behind that debt.

"Effectively, the federal government has now become the nation's mortgage lender," he said. "This takes a major financial threat off the table."

Friends, if conventional mortgage rates begin to move towards a 5.5% rate from the mid 6% rates were seeing today, the faint light we've been imagining to see at the end of the tunnel will start to get brighter. Do not for one second think that this will cure all of our ills. There are still too many foreclosures both in the Indianapolis area AND nationwide for that to be the case. There is still far too much resale inventory for that to be the case. There is still a total trepidation among buyers that they are paying too much that won't go away anytime soon.

It will, however, add hope....which may be the most important factor in determining the direction of the market in 2009.

Virtually Green: What the Real Estate Business WILL Become (coming Monday 8/25)

Dropping the F Bomb: Recovery's Starting Point

For years real estate foreclosures have been a small percentage of the overall market place but still having a powerful affect on values. In the Indianapolis market foreclosures for many years were 7-9% of all properties sold over the course of any one year. Then came 2006....and 2007....and this year. In the latter part of 2006 foreclosures began to run rampant gobbling up a 15% share in the 4th quarter of the year. In 2007 that number rose to 23% of all properties sold and in the last 90 days here in 2008 foreclosures both nationally and locally were running as high as 30% of all homes in the market in a given price point. From a realtor's perspective, that's a stunning number.

30% is a stunning number because that means 1 in 3 homeowners who are selling have lost their property to a lender. It's a stunning number because it destroys value in other resales homes in a given neighborhood or township. It's a stunning number because it also means that municipalities have been denied the property tax revenue for those homes that's needed to provide essential community services. It's a stunning number because over a prolonged time period, it sets a totally different benchmark for comparable sales that affect the lives of many real people who are dependant upon the equity that they've created in their homes.

The crystal ball is still very murky but eventually we are going to see the foreclosure numbers turn. The recent passage of the 'housing bill' will allow many of the millions of sub prime loans made in '06,'07 and '08 to be refinanaced, thus saving them from the foreclosure wrecking ball. That will be a huge factor in any recovery from the housing depression we're in. It seems that the bottom of the trough may come late in 2008 or early in 2009 with the potential for the overall foreclosure market to begin to recede. When it does the resale market will begin to correct it's excessive inventory and eventually new home construction will begin to improve. But that's at least a year away. For now, simply saving more residences from ending up overgrown, dilapidated and depressing to many of their closest residences is a noble goal. It's one that actually may be in sight as the proverbial 'light at the end of the tunnel.' How far off that light is or how soon it becomes reality is still unclear. How soon it comes will determine whether our housing slowdown is a 'V' or a prolonged 'U.' For the sake of everyone's financial sanity, let' drop the F bomb NOW....and make certain that letter is a quick V instead of a long term U.

Questions? Comments? Donations? Greg@GregCooper.com or 317.848.GREG (4734)

Coversation Of The Week:

Expired Listing Seller: "I'd like to speak with you about listing my home"

Me: "Certainly....tell me about your property's history"

ELS: "Well it's been for sale for a year with no showings and no price adjustments."

Me: "Are you aware of the available inventory, how many homes have sold in your price point and location?"

ELS: "No....but I built homes for several decades and I know what this property's worth."

Me: "Have you had an appraisal?"

ELS: "No....by the way you're not going to be one of those agents that keeps telling me to lower my price, are you?"

Me: "Why would I actually want to waste your time with nonsense about supply and demand, inventory absorption and silly little things like how buyers actually feel about your property?"

ELS: "Good....I think we're going to get along just fine...when can you come out?"

Me: "I can be there just after nine on Monday, July 21st, 2010. Looking forward to seeing you. One more question Mister ELS....are you aware that we're in the most challenging real estate market since the '70's?"

ELS: "No but I've got the entire Pable Cruise collection on vinyl. I loved the '70's!"

To think some people believe we Realtors are overpaid.

Questions? Comments? Donations? Greg@GregCooper.com or 317.848.GREG (4734)

Who are your buyers?

All right sellers....it's your day here on America's Real Estate channel.

With all of the confusion about today's home buyers, let's try and quantify who exactly a 'buyer' is in Today's New World Of Real Estate.

Today's buyers are thoughtful, contemplative and VERY cynical. They have been looking at homes for some time and can't seem to find the urgency to make a decision. They trudge through homes for weeks repeatedly finding what would be a good choice only to walk away from every possibility because 'surely we can find a bank owned home for 50 cents on the dollar.' (Pssssst.....here's a hint: You can't. Banks are horrendously backlogged on foreclosed inventory and have no idea what their properties are worth. Odds are slim you'll get them to come to your price and you'll have to wait weeks for them to actually respond to your offer while you miss other good choices).

Today's buyers are not concerned about interest rates, comps or your investment as a seller. 'Hey, time's on our side,' as I was told last week by a prospective buyer....and you know what? They're right. Come Labor Day in Indiana and in many real estate markets across the country there's going to be a sense of desperation in the air. Sellers are going to wake up on September 2nd and realize they could be staring at another winter of paying the bills with no promise that next April things will be better.

Regrettably my trade association, the National Association of Realtors, has wrecked their credibility this year. They and their chief economists stood with stone tablets high on the hill this past January and proclaimed:

'The down market will turn this summer!' 'We are near the bottom.' 'Things will improve in the last half of 2008.' 'Stay calm....all is well!'

When they stole the line from the Titanic's cellist it was obvious they were too clueless to know better. What they have done is a tremendous disservice to home sellers across the country. They created false hope instead of motivating sellers to get their homes priced agressively enough to sell in the most challenging market in 40 years. That's right...this is worse than the late '70's.

Things will improve eventually.
My best guess is we will see some stabilization next Spring with better times ahead in 2010 but NOT before the current foreclosure and inventory mess get cleaned up by natural market forces.

If inflation caused by the high fuel prices pushes the mortgage rates up significantly, then ALL BETS ARE OFF FOR A HOUSING RECOVERY. I would also reiterate what I have stated countless times on this blog: Those that buy during this time will absolutely look back on it as one of the best investments they're ever made.

Those that keep wandering the path from house to house will still be wondering when the bottom will arrive long after values have turned and are heading back up.

Which one will you end up being?

Questions? Comments? Donations? Greg@GregCooper.com or 317.848.GREG (4734)

Monty says...
You can sell it now for a vastly reduced price OR accept whatever's behind the 2009 curtain of uncertainty!

[Note...this piece is a compilation of thoughts from a number of different Real Estate Brokers across the country and their experieinces from Chatham, Mass. to Southern California. If you would like every individual credit email me for the list]

Every so often the truth alarm goes off out there in the big wide world of real estate and won't stop sounding until we share the hard edged realities of where the market stands. This is one of those times. Before reading on, clear your head.

Home sellers, what you want, think, hope for, believe or get told by your neighbor's landscaper's cousin's best friend Trudy is no longer relevant.

Whether we like it or not, THE MARKET IS THE MARKET and the market is more challenging than it was even a few short months ago.

First, the data. Two years ago over 40% of homes that were listed for sale, sold in the first 180 days on the market. Today that number is 9%. Less than one of ten homes listed gets sold. If you want to sell, that's your benchmark.

Second, here's what the buyers are thinking and by that we mean here's what ALL buyers are thinking:

Everyone wants everything and they want everything for a “deal.”

That deal is defined as whatever the seller is asking less some other large number. For one of our clients, the magic number is $75,000. If the home is priced at $500,000, they want to offer $425,000. If the price is $199,999 they want to offer their Federal tax rebate and receive a credit of $50,000 towards closing costs. If the price is over $500,000 you are less than 4% of ALL 2008 home sales so you can just take the previous reductions by purchasers and multiply them. Above $900K is nearly impossible with less than 1% of all home sales occurring there.

Sellers take note:
Too many buyers don’t want to see the “comps” anymore. They don’t care. They are looking at real estate as much more of a commodity. They are looking over a more broad area which means sellers are competing against a larger supply of inventory. Then, many of these buyers are firing blanks, writing offer after failed offer, or worse. Many others are relegating themselves to the sidelines, while a great home goes by. I cannot tell you how many times I've walked out of properties that buyers have decided against knowing they had just made a huge mistake and it was probably going to end up costing ME a sale. This is what happens when fear takes over in a market.

To get to the closing table you must be a fire sale or you must be so unique that the one buyer out there cannot go elsewhere to find what you have.

That doesn't mean just because your 3rd shower has pink tile you're going to get your price. Eventually buyers will begin to make decisions with some certainty. I firmly believe when they do, they'll be pleased with the outcome. But that's next year.

This year, if you are not motivated by price and flexibility, please reconsider having your home on the market. If you don't have those two items correct for the full market you are wasting your time. Brutal honesty is not always pleasant but anything other than the truth would be a tremendous disservice to our clients. Those that tell you otherwise are either just trying to buy your listing or don't know any better. Do you really want them in charge of your investment worth hundreds of thousands of dollars?

Comments? Questions? Donations?
Greg@GregCooper.com or 317.848.GREG (4734)

Misery Business.














There's no other way to describe how the way flooding has affected Indiana over the past five days. Nearly 11 inches of rain fell in a number of places from roughly 10 p.m. Friday night 6/6 to Noon on 6/7. We've had several additional inches since then which has only added to the pain residents south of Indianapolis have felt. This view from State Road 37 in Martinsville is one of many examples of the mess. As of this post the immense waters have rolled further south and affected addtional counties in southern Indiana.

Across Greenwood, Franklin, Columbus and numerous other communities the flood waters have raged and ruined countless homes, businesses and lives. You can see additional aerial photos of the damage across Indiana here. Readers of the Indianapolis Star have submited numerous photos that can also be viewed.

Now there are additional hazzards in the water, some man created and some natural but all are hindering clean up which will take months.
It seems a bit petty to be thinking about our real estate market at at time like this so for now, we would encourage you to support those in need by donating to the Indiana Red Cross.

Those affected are in our thoughts and prayers. We'll have a market update on less important matters in the next few days.

THEY'RE GONNA DO WHAT?

Apparently, any of us who are having a side swipe (or head on) with the real estate business at this moment in time are not already suffering enough. Effective 6/1 Fannie May and Freddie Mercury have updated the underwriting engine for loan applications. In english this means changing the requrements for getting a loan.
The result seems to be an increasing denial rates on loan applications by 20%. Additionally if the application was not submitted for underwriting prior to 6/1 there will not be a 100% financing option. What does this mean? If you have not applied with a lender and had your credit pulled and underwriting findings pulled, you're starting over. From Monday 6/2 on it's a new day in the approval process.

Go Directly to Jail.
Here's the question of the week:

Q: I have a property that is worth $500,000 that I am selling for $300,000. I know it is worth $500,000 because I had it appraised recently at that value. A buyer wants to pay me $400,000 and then have me give him $100,000 back after the closing. Is this legal?

Dear 'Frustrated':
If your property is truly worth $500,000, you should get paid that amount and any contract to sell the property should accurately reflect what you are getting paid for it. If your "appraisal" is accurate, you should be receiving that amount in the fair market. In the end, you know what they say. Appraisals are like......well never mind.

To answer your question, giving $100,000 to your buyer after the closing may be illegal on many fronts. If your buyer is obtaining a loan to buy the property, you may be participating in a fraud against the lender by structuring the transaction to deceive the lender into believing that the buyer is putting money down for the purchase when the buyer is actually getting money back after the closing. It may also be illegal under the laws of our state and under your local municipal codes that require you to accurately reflect the sales price for any property sold by you. Please consider a trade with a preforeclosure in Mars Hill before consumating this transaction or at the very least GET AN ATTORNEY.

Give Me An F!
Foreclosures continue to rise nationally, blowing the lid off in the 1st quarter of 2008 compared to the 4th quarter of 2007. Locally it's trending the wrong way as well. In 2007 23.7% of all sales were bank owned. In the first five months of 2008, nearly 29% of all sales were bank owned. Want to be thoroughly depressed? Go take a look at how many foreclosures are in your own zip code at RealtyTrac. It's another important factor in further slowing the absorption of inventory in the current market which is a must before any recovery in the housing market can occur.

Special quality abounds in our House of the Week

It's tough enough to sell a home in this market without any internal issues to deal with in a given property. On the rare occasion that a residence is truly right, the story is an easy one to tell. As things are today, many homes are good....few are great. Great Indiana homes ultimately are a pristine reward for their eventual new owners. The incredibly detailed and intricate craftsmanship is everywhere in this residence and at $797,900, 3969 Chadwick Drive in Carmel is a great home.

Built by Will Wright and completed 8 years ago, there is little detail or true quality left out. From the endless hand crafted wood work to the constant attention to every well thought out design element, it's difficult to find a flaw and probably would be well in excess of $900,000 to reproduce if you could find a comperable lot. With great complimentary community amenities like the
Arts and Design District,the sparkling new fifty five million dollar Monon Fitness Center and the Indiana and national award winning Carmel Clay Schools, it's an area that enjoys great quality of life.

The home is a daylight ranch with complete exposure on the lower level. It has four solid bedrooms with the potential for a fifth on the lower level. There is a grand gourmet Kitchen and Great Room combination that pulls all who enter into the center of the main level. From the double ovens to center island and into the Great Room, it's a remarkable area.

Sitting just to the right of the flat screen is the Sun room entrance, a bright and picturesque retreat that works beautifully for office or a quiet reading or relaxing area.

The main level also boasts the Master Suite with spacious sitting area and roomy, opulent bath and walk in closets. The laundry also occupies the main level and here's a rarity: The laundry actually has abundant room for appliances, folding space and an entire wall of cabinetry above a secretarial area. In today's new homes too often the laundry areas are depleted, but not here.

The lower level has bedroom space, exercise and storage with the highlight being the rec area.

Billards, theater viewing and a cozy fireplace combine with the wet bar to set the perfect entertaining location. This is a part of the home that could have great access to the rear yard, a perfectly manicured stretch that the current owner has considered a pool on and has the renderings to illustrate the possibility.

One of the unspoken high points to this home in Carolina Commons is that is sits on a remarkably convenient location. Just north of 106th and Haverstick and backed up in the neighborhood to a family estate, this marvelous residence/location package are a fantastic combination that's rarely found in today's marketplace. You can view the complete visual tour here or you can contact us directly for more information.

Greg@GregCooper.com or 317.848.GREG (4734)

I'm tired of the horse bleep.
No, really, I have lost my patience for those in my business that keep preaching roses and lollipops. The real headline in the Indianapolis real estate market is that it truly is an incredible time to buy a home.

Let me say it again. It truly is an incredible time to purchase a home.

Where I have issue with my brethren in the real estate industry is that we should stop entirely with the 'well, it's getting better' horse bleep. It is not getting better right now. It will get better eventually. It may bottom out later this year. It will begin to slowly crawl off the carpet next year. We are not in a market that suffers like Southern California, Florida, Phoenix-Scottsdale, Las Vegas and others that are losing 50% or more of their value in the last 18 months. We are in market that has lost value and units sold and STILL has huge property tax issues....most specifically Marion County.

Sit down for this one....Marion County in many places has gotten worse with the new reassessment of the new reassessment of residential property taxes. Case in point...three bedroom, one bath home in Arden on Indy's north side will be paying $4400 year this year plus the additional tax bill of about $1600 that's a 'make good' from 2007. The same home in Carmel will pay $1560 this year based on square footage. The Arden home will come down to $3100 in 2009 and $2250 in 2010 but that will do nothing to help home values for at least the next two years. The collateral damage is that the perception of tax problems will plague ALL homes in Washington Township for some time to come.

Here are the most recent numbers for April 2007 to April 2008:

Homes pended in central Indiana April 2007: 2735
Homes pended in central Indiana April 2008: 2076
Differential -23.85%

Washington Twp. Marion County Closed sales April 2007: 208
Washington Twp. Marion County Closed sales April 2008: 147
Differential: -29.4%
Average S.P. Washington Twp. Marion County 4/2007: $224,649
Average S.P. Washington Twp. Marion County 4/2008: $181,866
Differential: -$42,743

The numbers go on and on like this with only Boone and Hamilton Counties actually seeing price increases but with units sold in decline.

Be it Indianapolis real estate values, Hamilton County real estate or any of the contiguous counties, it is an incredible time to buy real estate. It will be one that we may not see again for many years on the buyer's side. It will be one that many will look back on as being one of the best investment times of their lives. That doesn't mean there isn't pain. It simply means for those who must sell, reality is a very large pill to swallow and will require difficult decisions. Failure to do so will mean a 'for sale'sign could still be in the future of those who can't make the tough decisions. It could mean that in May of 2009, that 'for sale' sign is still in front of their property. Or for some, it could and will mean worse.
Questions? Comments? Donations? Greg@GregCooper.com or 317.848.GREG (4734)

Here's a novel idea........

Two very bright guys named Brian Boero and Mark Davison at 1000wattblog.com, have created a video from research they've done about the real estate climate or more specifically the real estate client. While I'm not in 100% agreement with every sentiment (I happen to think it helps that customers know I'm a real person), there is a real education to be had in this video. More to the point, I'd love to know what YOU think about the thoughts expressed in this one minute capsule. Feel free to email me....agree, disagree or digress. Greg@GregCooper.com

I am not a lead

From Mama Carolla's to Bub's. Midwest Living hits the Monon Trail.

In the May/June edition of Midwest Living, Donna Segal and her husband bike from Broad Ripple north along the 16 mile expanse of the Monon Trail and ruin my diet with Mistro Mare from Mama Carolla's,
cookies from Rene's Bakery and a full frontal view of The Big Ugly burger from Bub's, among other things. It's a wonderful piece that maps the trail from 54th street north to Main Street in Carmel where Bub's, Bazeaux and Ferrin's Fruit Winnery all sit within a short block. Touting a million Monon users a year, this is a great piece on our city and region that appears on a national scope. I think the over/under on weight gain just from reading the piece is 5 pounds.


Builder's numbers from Indianapolis continue to slide with the pace for new homes to be right at 4500 built in 2008, down 60% from the annual average just 3 years ago. Meanwhile the local housing stats are grim but with some faint flickers of light down the tunnel. Local sales of preexisting homes are off anywhere from 10%to 40% depending upon which geography you're in with some micro price points suffering more than others. The entire market is razor thin right now with there being little logic as to what sells and how. The general rule of thumb is that unique sells as long as it hits the highest demand for the market. Great houses sell in most cases. Good houses sit - unless they're priced in an incredibly aggressive manner. First time home buyers should be out in droves but they're not for several reasons. They are still hesitant because of all of the bad press and they're still uncertain because of how tight the lending standards have become in the last 60 days. The easy money of the past 15 years is gone. Right now we're essentially in a risk based lending world, with credit scores, income and down payment driving what a prospective buyer can obtain in the way of financing. The ability and experience of the Mortgage agent is EVERYTHING in the pursuit of a home purchase right now.

The day is coming when listing a home for sale will mean much more than a local MLS posting. There are multiple national platforms that are battling for that brand position and if I had to lay money down, I'd say Zillow will emerge eventually as the leader. Zillow allows anyone to post a home for sale and in some cases post a 'hypothetical' home for sale so that potential sellers can see what demand there may be for their property. Of all national real estate hits, Realtor.com still commands about 9% of the initial search hits but Zillow is growing at over 4% while Realtor.com's numbers are shrinking. Will that make all Realtors obsolete? In a word, no. The future will require Brokers to be vastly skilled in the practice of analysis and presentation rather than simply just spooning out proprietary information as has been the case in the past. Those who don't, won't surivive. Those who master these tools will flourish and be highly sought after.

Comments....questions.....donations:
Greg@GregCooper.com or 317.848.GREG (4734)

Earth Week 2008: It's not just for tree huggers anymore.

Breaking News. I'm late to the party. The effort to recognize
'saving the planet'
began decades ago and even though I remember vividly planting a tree with my elementary school class on Earth Day, I've never fully embraced the concept. Not that I disagreed with it mind you, it's just that either I didn't have the time or was far too shallow and self centered to get it.

Well I've come around. No, I won't be making any appearances at TreeHuggers anonymous anytime soon (Hi I'm Greg and I'm a tree hugger) but suddenly having a conscience about the condition of the world we live in has become clear. It's not just any one thing that has changed my view, perhaps it was many. Perhaps it was my eight year old watching someone toss a bag of trash on the highway and ask me why they would. Perhaps it was the recognition of how magnificent a Bradford Pear looks on an Indiana Spring day. Perhaps I'm just getting older and am finally realizing what am amazing world we live in. Perhaps it was the simple understanding that my personal business can be done in a way that uses less of everything perishable than it did two years ago.

I'm not interested in simply putting people out of work to make certain a specific strain of weed has more of a natural environment to procreate in but I am interested in balance. Balance between doing one's job or living one's life and doing so in a way that doesn't trash the world around us. In other words a simple effort to exist without gobbling every usable resourse around us when it's not necessary to do so. For me, technology has actually furthered the Earth Day cause.

Technology has brought my real estate business to a point that we can almost go paperless if we make the effort. Frankly we should be going paperless because it's easier and it's better for the world we live in. We're at the point today where very little cannot be scanned and filed electronically. In fact we do that after every real estate closing we have. Our company sets up a web storage for every document that takes place during a transaction and maintains it for seven years after the closing. We should, as an industry be doing it for every aspect of a transaction from listing a property to the day it closes. Yard signs made from recycled paper, creating recycling stations at our offices, finding ways to cut office energy costs and yes, giving up the industry mandated Sedan DeVille in favor of a more fuel efficient way of getting around would all help. If the real estate business would take the lead and make an effort to reduce our carbon footprint, think about the results it would cause. We would instantly raise awareness of eco friendly policies simply through our marketing and frankly we would get a little love from a general public who often views us as one level above ambulance chasers in the business food chain.

So let's all make an effort. Not to throw out the baby with the bath water like many who are utterly hypocritical about green, but to just do what each of us honestly and reasonably can to 'do well by doing good.' In the meantime why don't we finish on a lighter note with a rant by my good friend Lewis Black on Earth Day 2007. He spares no one...which is why I've always liked Lewis.



Questions? Comments? Donations? Greg@GregCooper.com or 317.848.GREG (4734).

Taking Stock(dale). Where are we? The American economy feels a bit like that phrase uttered by Ross Perot's running mate, Admiral James Stockdale during his vice presidential debate a number of years ago.

"Who Am I? Why am I here? How did I get here"?

Contradictions abound as to where we actually are right now. Oil prices are skyrocketing due to demand (by the way with China putting 2500 NEW vehicles on the road every day, don't expect that to get better anytime soon). Consumer confidence has reached it's worst point in more than a decade and banks and major lending institutions are being watched daily for some stress point that could lead to a failure. Recession? Recession? RECESSION? (he says in Jim Mora like amazement). Of course we're in a recession. We don't need two quarters of documented history to tell us that. Yet despite all of that the stock market seems to have stabilized over the past week or so. While I don't agree with the overall observation that mortgage rates are historically low, many do feel that's the case. NOTE: In my mind, far too many people have 5.0%+- mortgages obtained in the '04-'05 years to think 6.0% is a 'good deal.'

While the credit crunch has lead to significantly more stringent guidelines for getting a mortgage, don't think anyone with a pulse couldn't get a VISA card right now. I think even this guy would qualify today:

While the unsecured credit market has become a dead man's party at this moment in history, that too should tighten some as lenders take a pounding this year from defaults on bank cards and the like. Frankly that couldn't come soon enough. It is beyond ridiculous how easy it is to get unsecured credit given how easy it is to wipe it out and start over. It's also a major contributor to identify theft, another problem plaguing the 'good credit' market.


So where does that leave us in the housing market? The summary version is that I still believe, as I have for months, that those who buy homes in our current environment over the long haul, will look at it as one of the best investments of their lives. The cost of building new product will never be less than it is today. If you're a seller, forget trying to understand the market. It's not about price point, meaning you're better off at $250K than $800K. What's selling today is unique.

Well perhaps not quite this unique but unique none the less.

By my definition what qualifies as unique in Today's New World Of Real Estate is a home that fits the perfect need of an active and motivated buyer in the market place. Sound simple? It's not. There aren't that many of those active and motivated buyers out there. If you are one of those, try and avoid this pitfall: Don't think when you find the home that fits your wish list you are going to offer .60 on the dollar and buy it. The overall market has already forced that property into a price contraction. If it hadn't, you wouldn't be looking at it.

When will it all come back? Oh that's easy. When new construction grinds to a complete hault so that current inventories are absorbed and employment and wage growth occur, thus reinvigorating demand to the point where it exceeds supply. Pretty simple stuff and economically sound....and no if you're wondering I didn't write it but I agree wholeheartedly. The time is coming when we will see prices begin to rise but in the meantime, don't believe everything you read about how horrid it is out there. There are challenges but the cycle will turn.

Questions? Comments? Donations? Greg@GregCooper.com or 317.848.GREG

A great commercial for Indy, taking care of the mother ship and a National MLS....

A bit of positive in all of the negative news we've had lately about our economy. Local recording artist Jon McLaughlin has a release out titled Indiana which he's graciously allowed the Indianapolis Chamber of Commerce to use in their marketing via the web. You can view the video by going to the Chamber of Commerce web site.

We would also encourage you to support Jon's work at his home page as well. I've heard the song 'For You From Me' about four times and it's already stuck in my head. Thanks Jon for such a great piece of work and the opportunity for our state to be presented in such a good way!

While I'm making a rare foray into music, here's another one for you. My friend Jim Swinson's alter ego is
Pamilco Joe, an environmentally friendly musician from North Carolina that has worked tirelessly educating kids about taking care of the world we live in. His CD's play every night in our house (I can sing them in my sleep) and are a great investment if you spend any time around children. Jim and his better half, Clearwater Flow have played multiple times at the White House and the Smithsonian Zoo. He and his multi talented band are on their 2008 World Tour right now performing at schools, festivals and gatherings spreading the word.

National MLS?
Real Estate site Zillow has begun the inevitable process of forming a national MLS by signing on their first client in Connecticut yesterday. All homes for sale in the state of Connecticut will be on Zillow which is an incredibly user friendly site. Should Realtors be concerned? Uh, yes. Not because it will make us obsolete but because like every service industry, the cream of the crop will survive and the rest will not. It's no coincidence that one of Zillow's founding members was a part of Expedia.com who, along with Priceline and Travelocity and countless other sites have basically put travel agents out of business. 10 months ago I wrote a piece about how the parallel of the travel and real estate industry would mean massive changes for all involved in the process of selling property. I believe in that parallel now more than ever. In a nutshell, here is is:

As Realtors, our value in the future will come not from proprietary information but in the analysis and guidance we give people based on that information.

Mull this over. If you're a consumer, I'd appreciate your thoughts by email or phone contact points listed at the bottom of the post.

Nightly real estate rates mixed
30-year fixed rate at 5.66%; 10-year Treasury yield at 3.34%
Long-term mortgage interest rates ended Wednesday mixed, and the benchmark 10-year Treasury bond yield dropped to 3.34 percent. The 30-year fixed-rate average held steady at 5.66 percent, while the 15-year fixed rate gained to 5.09 percent. The 1-year adjustable rate rose to 5.42 percent. The 30-year Treasury bond yield slipped to 4.21 percent.Rates and bonds are current as of 7:15 p.m. Eastern Standard Time. Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.


As always...questions....comments.....donations: Greg@GregCooper.com or
317-848-GREG (4734)

Stupid Is As Stupid Does

Apparently it's catching. The stupid gene, disease, virus, etc., is making the rounds to a degree that would make Mama Gump quiver with disgust. Yes, in an era that finds us in the worst real estate market in 30 years, we still have a mass worship at the alter of dumb and dumber. Locally, Indiana house leader Pat Bauer insisted on passing a tax relief bill that exempts two northern Indiana counties from a constitutional limit of a one percent cap on property taxes against the valuation of the home. Lake and St. Joseph's counties, prepare to get Ned Beaty in Deliverance style treatment. The only reason I care at all about this is because I'm originally from 'the region' and I hate the fact that Pat and his cronies can now stick it to the people that still live in those counties. The other teeny little issue could be the fact that it may make the whole amendment unconsitutional and we'll have to go through this entire damn charade again if that's the case....and why wouldn't it be?








Does anyone think the residents of Lake and St. Joseph counties won't fight this thing? If all of the work of the most recent general assembly becomes for naught, let's call for Pat's rug on a stick, shall we?

Next there's the genuises at Countrywide Mortgage. Terribly managed at the corporate level, they're now in the business of owning as much real estate as possible. Recently our brokerage had a home that had been listed for sale starting at $800,000 for over a year that had dropped to $675,000 with CW holding the mortgage. As it became a short sale (upside down) with NO offers on the home until it reached the $675K mark, it finally got an offer that was accepted by CW at $650K.

Their appraiser came to do a final appraisal on the home prior to the new buyer closing. The CW appraiser decided that even though the home had not sold at every price point from $800K on down to $675K where it finally got an offer, they would value it at $750,000 and subsequently blow the only offer to purchase they would have in over a year. Genius. That was the second such dealing we've had with Countrywide in the last six months that has ended like this. We all know what they say about fool me once....


Ahhh.....then there's the whole Bear Stearns fiasco that took a stock price of $80+- a share on 3/10/2008 and turned it into $2 a share 6 days later. This situation is much more complicated with liquidity and investment placement issues but the bottom line is that one of America's leading finiancial institutions has fallen faster than Humpty Dumpty. Thousands of employees are out of work, retirement portfolios are gone and massive uncertainly crowds the financial markets. Is there another Wall Steet shoe to drop along with Bear? Let's hope not. The fragile psyche of the consumer doesn't need any more bad news.

Let's switch gears to conclude with a little good news. Of a more pure and simple fun nature, I had the pleasure of watching, filming and nearly getting arrested participating in the Indy St. Patty's day parade with my step son Jack on 3/17. It was cold, blustery and no one cared. Many people that we know don't really understand Jack's interest in Irish Dance. Well here it is: I'm sure even at his age the 4-1 ratio of females to males isn't all bad. From our end it's physical, mental and social requiring discipline and a personal investment from him. Everyone's a specialist in this day and age and if that specialty helps you grow into a better person, I'm all for it. It's a long way from politics, home mortgage nightmares and Wall Street but right now, that's not all bad.

Questions....commments.....contact: Greg@GregCooper.com or 317-848-GREG (4734)

Let's get green. Tis the season for shortish men with elf like grins. Yes, it's the season for celebrations of all things Irish. In Indianapolis most kids want to be Peyton Manning. Mine wants to be Michael Flatly. In March, that can be viewed as a noble goal given the month. Right now, yes we're thinking green but there is more than one reason to do that. The obvious is that in a few days we'll collectively come out of our cabin fever, pour a green adult beverage and watch our community celebrate St. Patty's Day. The eight year old in my house got a bit of a jump on it with his Irish dancing recital at the Warren Performing Arts Center. Hard to believe that in Indianapolis, home of the almost no significant cultural diversity (insert tounge in cheek here), there can be such an outstanding dance troupe, but there is. They won't be the only ones dancing or thinking green this month, however. Our good friend Federal Reserve Chairmam Bernake will be dancing a monetary jig as well, but with far more significant consequences. Chairmen Bernake will be guiding the Fed into another significant decsion on how far to lower interest rates again. There seems to be a common belief that it will be at least 50 basis points but some feel we could see a 3/4 point reduction. As sure as I stand here on my soap box had they been paying any attention last summer they could have avoided this. Since no one was listening, we're playing catch up on the rate front, no doubt with some painful national affect.

Bernake spoke recently about the current foreclosure problem. Battling a dangerous wave of home foreclosures,Bernanke called Tuesday (3/5) for additional relief and urged lenders to help distressed owners by lowering the amount of their loans. "This situation calls for a vigorous response," Bernanke said in a speech to a banking group meeting in Orlando, Fla. Even with some relief efforts under way by industry and government, foreclosures and late payments on home mortgages are likely to rise "for a while longer," Bernanke warned. Rising foreclosures threaten to worsen the problems in the housing market and for the national economy, which many fear is on the verge of a recession or in one already. Gee, do ya think?.

While the national issues remain top of mind, real estate remains a microeconomic, local issue. In Indianapolis that still means people are making incredible buys on property. Who has the courage to make those decisions now and who will regret not being a part of the value growth over the next several years remains to be seen. Meanwhile I'll be pouring myself a cold one in all of your honor and hoping for a better 2nd, 3rd and 4th quarters of 2008. Keep your shaleilee dry and your spirits up because friends, we're all going to need it.....

Contact....questions......donations:
Greg@gregcooper.com or 317-848-GREG (4734)

UPDATE: Will they really go down? Take a look at some potential revaluations of properties in the Indianapolis area after tax reassessment. Meanwhile the squabbling continues between our politicians as to what exactly will be done to ease the tax burden. It's times like these I'd like to slap Pat Bauer's toupe back into the '70's where both it and his management style came from.

Meanwhile......
I'm as mad as hell and I'm not gonna take it anymore.

Some blog posts are nice. Most of the time, I'm nice. Most of the time I'm positive. This time I'm neither positive or nice. This post is not nice. Frankly I'm angry. Angry because every day we get to explain to people why their homes are not worth as much as they were two years ago. I'm angry today for a number of other reasons which are best documented after you spend a few moments with Howard Beale.



Peter Finch won an Oscar in 1976 for his portrayal of Beale, an angry television anchor. For me it was worth a watch because it captivates my feelings quite succinctly about our current mortgage/credit/financial/housing/etc. crisis that we've put ourselves squarely in the middle of.

Personally, I'm angry because we've handed out millions of zero down mortgages in neighborhoods where hundreds of similar floor planned track homes sit side by side.

I'm angry because we've taught an entire generation of potential and current home buyers you don't need to have any money to own a home.

I'm angry because my new Australian Shepherd puppy Bailey could probably get a VISA card right now with the dozens of applications we get in the mail every year.

I'm angry because although the real estate community has been screaming about challenges in the housing market over the last year, it's taken until now for the federal reserve to wake up and smell the crisis.

I'm angry because in my community (Indianapolis) we've built over 100,000 NEW homes since 1998. That's one NEW home for every 3 preexisting homes in our metro area. Can you say oversupply?

I'm angry because it will take us years to get out of the mess we've gotten ourselves into.

The only things real estate related that I'm not angry about today is that I have a number of clients that are absolutely stealing property right now in their purchases. At least in a few years, I'll be able to give them good news about the appreciation they're recognizing in the real estate they're buying today.

Contact: Greg@gregcooper.com OR 317-848-GREG (4734)

Giving Thanks

2007 has brought many opportunities to The Richwine Group.....from the former Christel Dehaan residence that closed by mid 2007.....




....to this amazing 40 acre property in west Clay Township, also recognized as the former Hilbert Mansion. Could there be a new owner in this home's future?




The former Hilbert Estate has been rumored to be sold on multiple occasions. No matter what you read anywhere, there has been no sale to date on the former Hibert residence at 1143 West 116th Street in Carmel, Indiana.

Below is another one of the Indiana and the midwest's finest estates now also offered by the The Richwine Group. It is a stunning Geist Lake area property with nearly 6 acres on the secluded northern shore.



We have been blessed with great success again in 2007. We look forward to serving the Indianapolis area for years to come thanks to the great people we are privileged to work with. Thank you and have a joyous holiday season!

Greg Cooper 317.848.GREG(4734) or greg@gregcooper.com

This is the front view of REGGIE MILLER's Indiana home in the Geist area that is now for sale. Reggie has been a part of our community for over two decades and will remain so in the future. He'll be downsizing to something in our area with more practical space for his needs which ensures you'll still see him at local high school basketball games and around town. We've heard he's even been seen at the local market and been gracious enough to sign an autograph or two for kids who've approached him. Reggie has given much back to our community far beyond the basketball court. It's a privilege to represent him in this transition and have him living in Indiana in the future. In addition to the former Hilbert Mansion, this is clearly one of Indiana and the Midwest's premier estates.

Please see the link to the left for addional photos of the residence.

If you have any questions about this home or the facts surrounding it's sale, please call Dick Richwine or myself at 317.848.GREG (4734).

Here's a video link for Dick Richwine talking about Reggie's home in Indiana:



We'd like to thank Tom Britt and all of the team from www.AtGeist.com for posting this on their site. They are a great resource for all kinds of information in the Geist area!.